This invention generally relates to inventory management systems and methods that involve automatic product replenishment through vendor managed inventory. In particular, the invention relates to an integrated system monitoring use of materials stored in tanks, controlling and monitoring delivery of materials to the tanks, and providing automated billing of delivered materials through communications between the tanks, a central station, and delivery trucks.
Inventory management is known in the art. For example, the liquified gas industry has a gas delivery system which uses telemetry systems to monitor customer volume. The object of such systems is to provide substantially continuous product supply. However, such systems are not easily adapted for use in other industries such as manufacturing and supply of animal feed.
Other systems define trigger points which require automatic mandatory reordering when a trigger point, such as a certain tank level, is reached. Such systems do not optimize delivery routes or costs because only mandatory orders are generated. A mandatory order is an order that must be delivered to prevent a stockout whereas a discretionary order is an order that can be delivered if economical to the suppliers. Also, such systems are not flexible and do not accommodate discretionary orders.
Without automated inventory management, a site manager must determine when product is needed, how much product is needed, when products should be delivered, and how the tanks should be managed. The manager telephones or faxes the order to the supplier specifying delivery dates and amounts. The manager maintains control and accepts responsibility for down time that is a result of the site running out of a raw material. When inventory management becomes automated, that loss of control may seem alarming to both site managers and purchasing agents. However, in an automated inventory system, such as the invention, the software and equipment ensure product in the tanks at all times while allowing the customer to maintain control by establishing customized delivery parameters for each individual site.